You register your own Philippine company and become the direct legal employer. You run payroll, remit statutory contributions, and manage compliance yourself, either with an in-house team or a local accounting firm.
What it costs: a foreign-owned entity generally needs around USD 200,000 in paid-up capital under the Foreign Investments Act, plus registration, legal, and up to 5 months of setup before anyone starts.
When it fits: when you are building a large local team (roughly 15-plus people), need a physical office or local tax residency, or want maximum control over employment policy. At real scale, the per-head cost is lowest this way. For a first hire, it is usually far more cost and time than the situation warrants.
Hiring & Search
How to hire in the Philippines: DIY, recruiter, EOR, or full-service compared
In short
There are four ways to hire in the Philippines from abroad: build your own entity, use a recruiter for search only, use an employer of record for employment only, or use a full-service partner that does both. Which fits depends on whether you have a local entity, whether you have already found the person, and how much of the process you want to run yourself.
If you are hiring in the Philippines from abroad, you have four broad options. Each solves a different part of the problem, and the right one depends entirely on your situation. Here is an honest breakdown of all four, including when each is the better choice.
Option 1: Build your own entity
Option 2: Use a recruiter (search only)
A recruiter finds you a person and stops there. They source, screen, hand you a shortlist, and help you close the offer. Employment is not their product.
What it costs: typically a percentage of first-year salary, often 15 to 25 percent, so a USD 60,000 hire runs USD 9,000 to 15,000. The fee recurs each time you hire.
When it fits: when you already have a Philippine entity and run local payroll, and you only need help finding the right person. If employment is already handled on your side, paying only for search makes sense.
What it costs: typically a percentage of first-year salary, often 15 to 25 percent, so a USD 60,000 hire runs USD 9,000 to 15,000. The fee recurs each time you hire.
When it fits: when you already have a Philippine entity and run local payroll, and you only need help finding the right person. If employment is already handled on your side, paying only for search makes sense.
Option 3: Use an employer of record (employment only)
An employer of record (EOR) employs someone on your behalf through their existing licensed entity. They hold the contract, run payroll, handle statutory contributions, and keep you compliant. They do not find the person.
What it costs: a per-seat monthly fee, typically USD 200 to 700 per person per month depending on provider and volume, plus statutory employer costs on top of salary. Some providers price a percentage of gross salary instead of a flat fee.
When it fits: when you have already found the person yourself, or already have someone you want to move onto a compliant local contract, and you just need the employment handled. Support is often self-serve through a dashboard, which suits teams comfortable running the relationship themselves.
What it costs: a per-seat monthly fee, typically USD 200 to 700 per person per month depending on provider and volume, plus statutory employer costs on top of salary. Some providers price a percentage of gross salary instead of a flat fee.
When it fits: when you have already found the person yourself, or already have someone you want to move onto a compliant local contract, and you just need the employment handled. Support is often self-serve through a dashboard, which suits teams comfortable running the relationship themselves.
Option 4: Use a full-service partner (search and employment)
A full-service partner combines search and employment in one relationship: they find the person and employ them compliantly, without you building an entity.
What it costs: models vary, but the more transparent ones charge a fixed search fee plus a flat monthly employment fee per seat, rather than a percentage of salary.
When it fits: when you are hiring in the Philippines for the first time (or the first several times), you do not have a local entity, and you want the whole hire handled in one place rather than stitching a recruiter and an EOR together yourself.
What it costs: models vary, but the more transparent ones charge a fixed search fee plus a flat monthly employment fee per seat, rather than a percentage of salary.
When it fits: when you are hiring in the Philippines for the first time (or the first several times), you do not have a local entity, and you want the whole hire handled in one place rather than stitching a recruiter and an EOR together yourself.
A simple way to decide
The decision comes down to two questions: do you already have a local entity, and have you already found the person?
If you have an entity and just need sourcing, a recruiter is enough. If you have found the person and just need compliant employment, an EOR is enough. If you have your own entity and a large team to build, doing it yourself may pay off at scale. If you have neither an entity nor the person, and you want it handled end to end, a full-service partner covers both.
There is no single right answer. The best option is the one that matches what you already have in place and how much of the process you want to run yourself.
If you have an entity and just need sourcing, a recruiter is enough. If you have found the person and just need compliant employment, an EOR is enough. If you have your own entity and a large team to build, doing it yourself may pay off at scale. If you have neither an entity nor the person, and you want it handled end to end, a full-service partner covers both.
There is no single right answer. The best option is the one that matches what you already have in place and how much of the process you want to run yourself.
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